Have you always dreamed about starting your own business and being your own boss?
You’re not alone – it’s a dream many people share.
Chasing this dream is a great idea, but it’s important to understand the ups and downs before diving in.
This guide will walk you through some of the biggest pros and cons to give you some much-needed insight.
Table of Contents
- Pros of Being An Entrepreneur
- 1. You Have Much More Freedom Over Your Career
- 2. And Much More Freedom Over Your Time
- 3. Your Potential Is Limitless
- 4. You Can Decide When Enough Is Enough
- 5. There Are Fewer Requirements for Education and Experience
- 6. You Can Follow Your Moral and Ethical Compass
- 7. It Will Push You to Grow and Be Better
- 8. You Can Work When, How, and Where You Want
- 9. You Can Provide Jobs for Other People
- Cons of Being An Entrepreneur
- 1. Entrepreneurship Requires a Strong Will and Commitment
- 2. It Typically Requires a Personal Financial Investment
- 3. And Your Income May Be Very Inconsistent
- 4. You Might Need to Keep Your Day Job
- 5. It’s Easier to Get Caught Up In Work – And Overwork Yourself
- 6. You Are Responsible for EVERYTHING
- 7. And All the Risk Lies On You
- 8. There’s a Chance You Won’t Be As Successful As You’d Like
- 9. No One Provides You With Employee Benefits
- Pros and Cons of Being an Entrepreneur – Summary Table
- Should You Become An Entrepreneur?
Pros of Being An Entrepreneur
Being your own boss definitely comes with some perks – including those listed below.
1. You Have Much More Freedom Over Your Career
One of the best things about being an entrepreneur is the freedom you have over your progress.
You don’t have to wait for someone else to notice how hard you work – you can give yourself a raise whenever you’re ready.
And you can choose which way to take your business.
If you start by building your business in one industry, then decide to call an audible to go in a completely different direction, you have that freedom.
2. And Much More Freedom Over Your Time
Another great benefit of entrepreneurship is having more control over your calendar.
You can choose what days and hours you work – at least to a certain degree.
If you provide a service to clients, for example, you’ll likely have to work around their needs and timelines.
However, for the most part, you can control when you work and when you don’t.
3. Your Potential Is Limitless
One downside to working for others is that you can only move up so far.
In some companies, that can be a long journey, but there is still an end to it.
Being an entrepreneur means having unlimited opportunities and potential.
No matter how high you choose to fly, you have the freedom to make it happen.
4. You Can Decide When Enough Is Enough
Not everyone wants to be a huge success – they just want to make enough money to be financially secure.
You are the master of your own fate with entrepreneurship, so you can decide when you’ve done enough – even if that means only working with one client.
And if you’ve had a really good sales day and made all the money you need for the week, you can take the rest of the week off – unless you have made commitments to clients for that week, of course.
5. There Are Fewer Requirements for Education and Experience
Have you ever been turned down by an employer because you didn’t have a degree and 5+ years of experience?
You don’t need to worry about this as an entrepreneur.
You might need to show some form of proof to clients that you can provide the services you are offering, but you don’t need a degree or work experience to do that.
6. You Can Follow Your Moral and Ethical Compass
Almost everyone has had a boss – or worked for a company – that somehow asked them to compromise their morals and ethics.
It might be learning sales tactics, being harsh with customers when collecting bills, or even learning that the company is harming the environment.
Whatever the issue might be, you don’t have to deal with it as an entrepreneur.
Whether you run a one-person operation or a large company, you can stand for what you believe in.
7. It Will Push You to Grow and Be Better
Owning a business comes with challenges – there’s no secret.
The good thing is, though, that every one of those challenges can help you.
Each one can push you to do better and be better – to find better ways to make your dream come true.
And every mistake you make along the way can be a great teacher.
8. You Can Work When, How, and Where You Want
Being your own boss means doing things your way.
That means if you want to work at 3 am in your pajamas on your couch while your favorite show is streaming, you can do that.
If you want to set up a “real” office and dress in business attire, you can do that, too.
9. You Can Provide Jobs for Other People
Finding a job can be a challenge for many people, but you can make a difference.
When you start a business, you are creating work for people – whether you are outsourcing tasks or hiring employees directly.
And you can be the type of boss for those people that you’ve always wished you had.
Additionally, any products you have to purchase to run your business can help create jobs in the companies you purchase from.
Cons of Being An Entrepreneur
Unfortunately, it’s not all caviar and champagne – there are some disadvantages to entrepreneurship.
1. Entrepreneurship Requires a Strong Will and Commitment
Let’s face it – being an entrepreneur isn’t always easy.
There are going to be some tough days – and sleepless nights.
There’s going to be a lot of stress.
Having a strong will and commitment just might be the only thing to get you through those times – especially when they seem to come back to back.
2. It Typically Requires a Personal Financial Investment
You are most likely going to be spending some money to get your business up and going.
For some, it might not be a large amount – just a few pieces of hardware, like a good laptop.
For others, it can require much more – depending on the type of business you’re starting.
Either way, it’s important to go into entrepreneurship with the understanding that you’ll need to invest to some degree.
3. And Your Income May Be Very Inconsistent
One of the absolute worst things about being an entrepreneur is the income – especially when you first start out.
It can be inconsistent and completely erratic.
You might make less than $100 one month and several thousand the next.
The best thing you can do is have a financial safety net in place to help keep your head above water.
4. You Might Need to Keep Your Day Job
Most people dream of quitting their current job and diving headfirst into their own businesses.
Unfortunately, it’s not usually that simple.
Instead, many people have to keep their current job for a while and work their own businesses on the side until they’re up and running.
This can be difficult, as both can be huge time commitments.
5. It’s Easier to Get Caught Up In Work – And Overwork Yourself
Running your own business takes a lot of time and energy and can quickly lead to burnout – or worse.
There’s no official clock-out time and no boss to fuss at you about getting off the clock before you hit overtime.
Sadly, working nonstop can very negatively impact your relationships and leave you feeling lonelier than ever.
That’s why it’s important to make rules for when and how long you’ll work – and set an alarm to tell you the work day’s over.
6. You Are Responsible for EVERYTHING
Literally, everything about your business falls in your lap.
You can – and should definitely consider – outsourcing some tasks, but you are still responsible for outsourcing those tasks.
And, of course, you can hire an assistant, but that too requires you to be hands-on.
All of this responsibility is one of the biggest reasons entrepreneurs work so much – and stay stressed all of the time.
7. And All the Risk Lies On You
Your business is your business, meaning that all of the rewards are on you.
That also means, though, that all of the risks lie on you, too.
If your company happens to fail or get off-track somehow, you’ll be the one suffering.
And if you’ve invested everything in your failed business, you’ll have to pick yourself up when it’s over – possibly with no money to help.
Having a backup plan is essential.
8. There’s a Chance You Won’t Be As Successful As You’d Like
You just might start a company that turns into an incredible success – the next Google, perhaps.
Unfortunately, it might also not be as successful as you’ve dreamed it would be.
You’ll need to be prepared for that possibility by – again – having a backup plan and by always looking for ways to improve and build your company.
9. No One Provides You With Employee Benefits
Being an entrepreneur means providing your own employee benefits since you won’t have a boss providing them to you.
That means you’ll need to get your own health insurance, 401k, and other benefits.
It also means no paid time off or holiday pay.
And keep in mind that if you hire your own employees, you’ll have to provide them with benefits.
Pros and Cons of Being an Entrepreneur – Summary Table
|Pros of Being An Entrepreneur||Cons of Being An Entrepreneur|
|1. You Have Much More Freedom Over Your Career||1. Entrepreneurship Requires a Strong Will and Commitment|
|2. And Much More Freedom Over Your Time||2. It Typically Requires a Personal Financial Investment|
|3. Your Potential Is Limitless||3. And Your Income May Be Very Inconsistent|
|4. You Can Decide When Enough Is Enough||4. You Might Need to Keep Your Day Job|
|5. There Are Fewer Requirements for Education and Experience||5. It’s Easier to Get Caught Up In Work – And Overwork Yourself|
|6. You Can Follow Your Moral and Ethical Compass||6. You Are Responsible for EVERYTHING|
|7. It Will Push You to Grow and Be Better||7. And All the Risk Lies On You|
|8. You Can Work When, How, and Where You Want||8. There’s a Chance You Won’t Be As Successful As You’d Like|
|9. You Can Provide Jobs for Other People||9. No One Provides You With Employee Benefits|
Should You Become An Entrepreneur?
Becoming an entrepreneur is a big decision, so it’s vital you take some time to think it through.
If you’re willing to invest your time, energy, and money in your dream while finding a way to balance family and your health, running your own business is a good idea.
However, if you’re not, take some more time to really weigh out the pros and cons.
Entrepreneurship isn’t for everyone – and that’s okay.